Will Mr. Potato Head Sway Consumers?

Armed with Mr. Potato Head as its new spokes-spud and $70 million in marketing, Burger King expects to let just about everyone in the U.S. know that it has a souped-up french fry.

And with its big advertising guns aimed directly at rival McDonald's, which boasts that its own fries are America's favorite, Burger King on Wednesday launched the new french fry that it says stays hotter and crispier than the old one. A teaser ad campaign begins airing on Thursday, and a french fry giveaway at all restaurants is slated for Jan. 2.

Burger King's new formula features an all-potato batter coating. These spuds have a different feel and hold the heat, the company boasts. Burger King says the new fry fills a gap in its burger-fries-soft drink combination that is the most popular meal at fast-food outlets.

"The last frontier in fast food is value. The next frontier will be taste," said Jim Watkins, senior vice president for marketing for Burger King. "But we haven't had the best-tasting french fry until now."

The $70 million, three-month marketing push for the fries marks Burger King's single largest investment behind a product. It is also its most pointed attack at McDonald's, with ads using the tagline: "The taste that beat McDonald's fries."

And with the big spending comes some risks. McDonald's spent a similar sum of money to market its Arch Deluxe line of sandwiches in 1996, only to have the line fizzle.

McDonald's continues to say that it isn't worried and has no retaliation planned. However, sources said the fast-food chain is considering a massive french fry promotion in February.

Analysts don't think McDonald's should rest easy.

"Clearly it's an interesting development," said Dean Haskell, an analyst who covers McDonald's for Everen Securities. "Burger King has the Big King, and now the fries. They've been able to move their breakfast business in a positive direction. (McDonald's) will have to respond."